EXHIBIT 99.1

                            Filed by Finisar Corporation pursuant to Rule 14a-12
                           under the Securities Exchange Act of 1934, as amended
                                                  Commission File No.: 000-27999


[FINISAR LETTERHEAD]

Contact:
Steve Workman
VP Finance, Chief Financial Officer
408-548-1000

Ed Lamb
Investor Relations
408-542-5050
investor.relations@Finisar.com


        FINISAR CORPORATION RESPONDS TO NOTICE BY INFINEON PURPORTING TO
         TERMINATE AGREEMENT TO ACQUIRE INFINEON FIBER OPTICS BUSINESS

SUNNYVALE, Calif.--(Market Wire)-January 12, 2005--Finisar Corporation (Nasdaq:
FNSR) announced that on January 11, 2005 it received a notice from Infineon
Technologies AG purporting to terminate the purchase agreement dated October 11,
2004, which provides for the acquisition by Finisar of Infineon's fiber optics
business unit in exchange for approximately 110 million shares of Finisar common
stock.

Infineon's notice alleges, among other things, that the purported
termination was based on Finisar's breach of the agreement. Finisar believes
that no such breach has taken place.

Prior to receiving Infineon's notice, Finisar had advised Infineon that its
Board of Directors was in the process of considering whether, in the proper
exercise of its fiduciary duties, it could continue to recommend the transaction
to Finisar's stockholders in light of a number of recent adverse developments in
Infineon's fiber optics business. The Board engaged in this re-examination of
its recommendation in compliance with the terms of the agreement.

Finisar has repeatedly assured Infineon that it is prepared to fulfill its
obligations under the agreement, including bringing the transaction to a vote of
the Finisar stockholders whether or not the Board's recommendation is modified
or withdrawn.

Finisar intends to defend itself vigorously against any legal proceedings that
may be instituted by Infineon and to assert appropriate claims for recovery of
damages caused by Infineon.

ABOUT FINISAR

Finisar Corporation (NASDAQ: FNSR) is a technology leader for fiber optic
subsystems and network test and monitoring systems. These products enable
high-speed data communications for networking and storage applications over
Gigabit Ethernet local area networks (LANs), Fibre Channel storage area networks
(SANs), and metropolitan area networks (MANs) using both IP and SONET/SDH-based
protocols. The Company's headquarters is in Sunnyvale, California, USA.
www.Finisar.com.

FINISAR CORPORATION RESPONDS TO NOTICE BY INFINEON PURPORTING TO
TERMINATE AGREEMENT TO ACQUIRE INFINEON FIBER OPTICS BUSINESS
PAGE 2

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1955

Certain statements contained in this press release may constitute
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, including statements regarding the status of
the purchase agreement between Finisar and Infineon. Forward-looking statements
involve risks and uncertainties, which could cause actual results to differ
materially from those projected. These uncertainties include risks associated
with the outcome of any potential arbitration or litigation proceeding that may
be instituted by either party. Other risks relating to Finisar's business are
set forth in Finisar's Annual Report on Form 10-K and other interim reports as
filed with the Securities and Exchange Commission.


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ADDITIONAL INFORMATION AND WHERE TO FIND IT

This press release may be deemed to be solicitation material in respect of the
proposed acquisition of the fiber optics business unit of Infineon Technologies
AG by Finisar Corporation. In connection with the proposed transaction, Finisar
has filed with the SEC a preliminary proxy statement regarding the proposed
acquisition transaction on Schedule 14A. The information contained in the
preliminary proxy statement is not complete and may be changed. Investors are
urged to read the definitive proxy statement when it becomes available and any
other relevant documents filed with the SEC because they will contain important
information. The definitive proxy statement will be sent to the stockholders of
Finisar seeking their approval of the issuance of Finisar common stock to
Infineon in connection with the proposed transaction. You may obtain copies of
documents filed with the SEC by Finisar free of charge by requesting them in
writing from Finisar Corporation, Moffett Park Drive, Sunnyvale, California
94089, Attention: Investor Relations, or by telephone at 408-542-5050 or by
email at investor.relations@finisar.com. In addition, you may obtain any of the
documents filed with the SEC free of charge at the website maintained by the SEC
at www.sec.gov.

PARTICIPANTS IN SOLICITATION

Finisar and its directors, executive officers and employees may be deemed to be
participants in the solicitation of proxies from the stockholders of Finisar in
connection with the acquisition. Finisar's preliminary proxy statement filed
with the SEC contains information regarding Finisar's directors, executive
officers and employees and their interests in the solicitation.